Global energy shortage or a coincidence of regional crises?

Oct 1 (Reuters) – British gasoline stations running dry, surging power costs in the European Union ahead of winter, forced restrictions on energy use in China and rising oil, natural gas and coal prices.

You could be forgiven for thinking the world had suddenly been hit by an energy shortage, but you would be mostly wrong.

While the squeezes slamming consumers and businesses is acute, the disruptions have less in common than you may think.

Uniting them is an energy demand rebound from lows hit in depths of the coronavirus crisis that has raised prices for oil, gas and coal, ongoing supply restrictions by oil cartel OPEC and global transport bottlenecks complicating fuel distribution.

But the list of what separates them is longer, reflecting that the disruptions may have more to do with local policy choices and regional dynamics than a global supply shortage.

Oil prices broke $80 a barrel this week for the first time in three years, with natural gas and coal also scaling multi-year peaks.

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Source: Reuters